#50 – Doyne Farmer on Complexity and Predicting Technological Progress
Hear This Idea
00:00
I'm Going to Be Following This Kind of Puzzle to Et Almost Everyoy
When the price is falling, you're selling. Ands there's a lot of leveraged investors who all do this together. They amplify the downward movement. That makes prices go down even more and then people have to sell even more. You get a feedback effect. So we we could see this happening at a very simple model that produces dynamics that looks a lot like what happened in the run up and then during the great financial crisis.
Transcript
Play full episode
